5.3. ERMUSR 11-18-2014 - Laserfiche WebLink

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• Proposed staff additions of a Key Accounts Specialist and Field Engineer • Internal promotion to fill new position of Assistant Electrical Supervisor • Planning for key retirements • Contract cleaning services for the Field Services Building • Delayed vehicle purchases Water Department Budget After not implementing rate increases in 2010, 2011, or 2012, staff worked to establish a multi-year plan to bring rates and cash flow projections in line with capital improvement plan projections. The multi-year plan was intended to feather in the projected larger rate increase needed for required future capital improvements. Staff had established a three year plan stating in 2013. The 2015 budget is based on implementing the 3rd year of the three year plan. The plan included a 4%increase in 2013, a 4%increase in 2014, and a 4% increase for 2015. There had been discussion and concerns about the range between water rate tiers. Because of this, the plan also was designed to bring these tiers within a tighter range. The plan was designed to leave the second and third tiers unchanged and gradually grow the first tier and effectively narrow the gap between the first and third tiers. For the 2015 budget,the first tier is increased by$.06, from $1.62 to $1.68. In addition to the first tier increase, the plan also increases the base monthly charge. The shift to increase revenue recovery through the fixed monthly charge helps to provide budget stability regardless of weather and water used for irrigation. The three year plan also included a shift to bring parity between the monthly meter charges for residential and senior citizens. This parity is achieved in 2015. The increases of the base monthly charges are $0.93 for seniors and$0.32 for residential bringing both monthly charges to $8.43. The commercial monthly charge increases range from $0.39 to $4.11 dependent on the service size. This distribution of the rate increases in this way provides for a balanced budget with appropriate matching of income and expenses for 2015. This positions ERMU for less volatility in water rate increases for the future. The intention moving forward will be to balance the budget with smaller rate increases annually with consideration for the required long term capital improvement projects. As with the electric,more detailed analysis of the proposed 3rd year of the three year rate increase plan will be provided with the for the Commission in December with the proposed budget. Notable items in the water budget: • Continued labor and focus on the Wellhead Protection Program • Maintenance of Structures includes roof repairs for well houses • New NISC software and implementation costs • Engineering for the construction of a new filter to be located at the Well#7 Filter Plant. • Proposed staff additions of a Key Accounts Specialist and Field Engineer • Proposed staff additions of a Key Accounts Specialist and Field Engineer PO � EOEO 01' Page 2 of 3 NATURE Reliable Public Power Provider POWERED T o S E R V E 68